GM in talks with M&M group to provide after-sales support to existing customers

While making the announcement, GM assured that it will honour all warranties and provide after-sales support to customers and was in talks with dealers on a transition plan.Sharmistha Mukherjee | ET Bureau | May 26, 2017, 08:33 IST

NEW DELHI: American automaker General Motors, which last week announced plans to stop selling vehicles in the Indian market, is exploring an arrangement with the Mahindra Group to provide after-sales support to existing customers, a senior industry executive in the know of the matter said.

“They (GM) have commenced discussions with Mahindra. They are exploring options to provide aftersales support to customers in India through a third party,” the executive told ET. Mahindra declined to comment.

GM’s India spokesperson said the company wasn’t in discussion with any third party for a takeover of the Chevrolet service network. “We have a strong network of Chevrolet dealers with staff well-trained to take care of the needs of our customers. We are working with our existing Chevrolet dealers to have them continue as authorised service outlets and continue to provide service to our customers,” the spokesperson said.

On March 18, GM announced that it will stop selling its vehicles in India by the end of this year, after the American automaker failed to find traction in a market where it entered more than two decades ago and sells vehicles with the Chevrolet badge. The Detroit-based automaker will, however, continue to make in India, utilising its Talegaon, Maharashtra, facility to export cars.

While making the announcement, GM assured that it will honour all warranties and provide after-sales support to customers and was in talks with dealers on a transition plan. It has 150 dealerships operational in India.

A second person close to the development said GM had talks with Mahindra First Choice Wheels for after-sales service about a year back. “But an agreement was not implemented at the time. There can be a reconsideration now," this person added.